Higher VAT rate a blow to retail sector

By Kieran Walsh. Published on Thursday, November 10th, 2011 at 3:29 pm

Last week’s Budget Plan was revealed with a balance struck between spending cuts and high taxes.

To opt for higher VAT is a real blow to the retail sector, which is already suffering, apart from the near inflation-proof supermarket trade.

Higher alcohol taxes specific to off-licences, in a bid to stimulate improved business in public houses would surely have been worth considering, but instead we’re being told that increased VAT is what lies ahead.

This is surely a counter-productive measure, driving more people to avail of the black economy while leaving already struggling businesses set for an even greater fight to survival.